- EUR/JPY falls sharply on Monday towards key support levels at 162.00.
- Technical indicators show increasing selling pressure, with the pair approaching the convergence of the 20-day and 100-day SMAs.
- The focus shifts to whether the pair can stabilize around 162.00 or risk a further decline.
The EUR/JPY extended its losses on Monday, falling 0.90% to settle at 162.15. The move highlights an increase in bearish momentum as the pair approaches a critical technical juncture, with the convergence of the 20-day and 100-day simple moving averages (SMA) at 162.00 set to serve as a significant support zone. The sharp drop marks a continuation of the bearish trend seen in recent sessions, putting buyers under renewed pressure.
Technical indicators reinforce the bearish outlook. The Relative Strength Index (RSI) has fallen sharply to 49, sliding into negative territory and signaling weakening buying interest. Simultaneously, the Moving Average Convergence/Divergence (MACD) histogram shows decreasing green bars, reflecting waning bullish traction and increasing short-term bearish bias.
Looking ahead, the 162.00 level, where the 20-day and 100-day SMAs converge, will be crucial in determining the pair’s next move. A decisive break below this area could open the door to further losses, with next support seen at 161.50. On the contrary, stabilization above this zone could encourage buyers to regroup and attempt a recovery towards the 163.00 resistance level. The pair’s ability to hold its ground at these critical levels will shape its trajectory in the coming sessions.
EUR/JPY Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
